Energy sector levy prudent step towards power stability – Abada
Public reaction to the levy has been mixed, with some citizens and opposition voices expressing concern that it may contribute to a rising cost of living.
A Communications Team Member of the governing National Democratic Congress (NDC) in the Navrongo Central Constituency, Mercy Abada, has endorsed the newly introduced amended energy sector levy, describing it as a critical intervention to stabilize Ghana’s struggling power sector.
Speaking during an interview on the Big Mike Breakfast Show on Mike FM, Abada stressed that the levy is not an additional burden on citizens, but rather a necessary amendment to an existing tax structure, specifically, the Energy Sector Levies Act (ESLA).
“Let us not go out with the notion that a new tax has been imposed on us because that is not true. It is just an amendment of an existing tax, and that is the ESLA tax,” Abada explained.
She further clarified that the updated levy is designed to respond to current economic demands and the evolving challenges in the energy sector, especially the need for sustainable funding to support consistent electricity supply and improved service delivery.
The levy, introduced by the Finance Ministry, is projected to generate approximately GHS7.5 billion. According to Abada, these funds will be directed towards reducing fuel costs for thermal power plants and servicing outstanding energy sector debts.
In addressing public concerns over the recent abolition of the betting tax, Abada dismissed suggestions that its reinstatement could be a viable alternative to the new energy levy.
“I think it was necessary for the betting tax to be scrapped. I believe so. When you see the processes that are going to be yielded from the GHS1 [levy], the finance minister projected 7.5 billion Ghana Cedis. I don’t think we can get much from the betting tax. We need a lot of money now to settle the debt,” she stated.
Public reaction to the levy has been mixed, with some citizens and opposition voices expressing concern that it may contribute to a rising cost of living. However, government communicators, including Abada, maintain that the measure is a strategic and fiscally responsible move.
Mike 105.3 FM | Navrongo | Alexander Kubabom
